Why Celsius Stock Plunged 52% Last Year

Stock Performance - Shares of Celsius plunged 51.7% in 2024, with a 73% drop from its high point in the same year [1] - The stock was up 76% in the opening months of 2024 before the significant decline [1] Financial Results and Challenges - Celsius missed Q1 2024 revenue expectations due to inventory management issues with its largest customer, PepsiCo [2] - Q3 2024 revenue plunged 31% year over year, marking the first negative growth since 2018 [3] - The company's price-to-sales valuation dropped to its lowest in nearly five years [3] Industry Dynamics and Market Share - Celsius rose to the third-largest market share in the energy drink space in recent years [5] - Q1 2024 market share was 11.4%, compared to 12.1% year-to-date as of Q3 2024 [8] - Consumer spending on energy drinks decreased in 2024, leading to inventory overestimation by PepsiCo [5] Supply Chain and Bullwhip Effect - The bullwhip effect in supply chains caused pronounced adjustments due to small spending changes by customers [4] - PepsiCo's inventory correction significantly impacted Celsius' revenue [5] Future Outlook and Growth Opportunities - Celsius claims its products still resonate with consumers, with potential upside in 2025 [8] - The company is expanding into new sales channels and entering new markets, which could reignite growth [8]